Rex Energy has entered into a definitive purchase agreement with SWEPI, LP, an affiliate of Royal Dutch Shell, plc ("Shell") to acquire a 100% interest in approximately 208,000 gross (207,000 net) acres prospective for the Marcellus, Upper Devonian/Burkett and Utica Shales in Pennsylvania and Ohio for approximately $120 million in cash, subject to customary closing adjustments. The transaction is expected to close in September 2014.

The assets to be acquired are located in Armstrong, Beaver, Butler, Lawrence, Mercer and Venango counties in Pennsylvania and Columbiana and Mahoning counties in Ohio. The additional acreage, combined with recent leasing, will bring Rex Energy's position in its Butler Operated Area to approximately 298,000 gross acres.

Transaction Highlights

~ 208,000 gross acres, representing a ~230% expansion of its current Butler Operated Area and ~200% expansion of its current Appalachian Basin assets; large contiguous acreage position adjacent to existing Butler Operated Area

Acquiring ~100% working interest and ~ 83% net revenue interest

Acquisition and future bolt-on leasing expected to position the Company for a multi-year development plan of approximately 400 potential liquids-rich drilling locations (~241 liquids-rich locations at closing) on 750 foot spacing between laterals, or an immediate increase of approximately 24% over existing identified liquids-rich locations.

Assets include ~16 MMcf/d either currently producing or available to produce with minimal capital investment; estimated proved reserves of ~ 21 Bcfe from these wells

Additional expected production of ~13 MMcf/d available from wells in various stages of development

Large contiguous acreage position in dry gas Utica area provides for future development program

Infrastructure and takeaway capacity agreements in place (~80 MMcf/d of firm transportation at attractive pricing) allow for full-scale development of newly acquired assets

Attractive acquisition value metrics on both a per acre and per location basis

Over 65% of acreage has leases with options to extend; remaining acreage is either held by operations or has manageable lease expirations

Planning to add 1-2 rigs in 2015 to the newly acquired acreage

Provides a platform for future strategic expansion

"We are proud to announce this acquisition, which is a milestone for Rex Energy," said Tom Stabley, Rex Energy's Chief Executive Officer. "The proximity of the Shell acreage to our Butler Operated Area, combined with our solid operating history, strong recent production results, and the attractive economics of our projects in the area made this transaction a natural fit for Rex Energy. With this transaction, we can strategically expand our development program in the Butler Operated Area, which we believe will bring significant upside benefits to Rex Energy."

For additional information regarding the company's Butler Operated Area acquisition, please review the supplemental information posted to the company's website at www.rexenergy.com.